Natural gas futures in New York rose to the highest price in almost four weeks on forecasts of hotter-than-normal weather that would boost demand for the fuel to produce electricity.
Gas gained as much as 5.3 percent as Commodity Weather Group LLC in Bethesda, Maryland, predicted above-normal temperatures in the southern and central U.S. from June 25 through June 29. The high in Dallas on June 25 may be 101 degrees Fahrenheit (38 Celsius), 8 higher than usual, according to AccuWeather Inc. in State College, Pennsylvania.
“The market is following the thermometer,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “There’s no doubt that it’s a very hot start to the summer, and that’s turning out to be supportive for prices.”
Natural gas for July delivery rose 8.6 cents, or 3.4 percent, to $2.631 per million British thermal units at 9:07 a.m. on the New York Mercantile Exchange. The futures advanced $2.679 per million Btu in earlier electronic trading, the highest intraday price since May 24. Gas fell to a 10-year intraday low of $1.902 on April 19.
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